- What does GST Stand for?
GST stands for “Goods and Services Tax”. Simply put, GST may be defined as a
tax on goods and services, which is leviable on every supply of goods and / or
services. - What are the taxes that will get merged into GST?
GST would consolidate into a single tax which would help to overcome the limitation of current tax structure and create efficiencies in tax administration.
It will consolidate various Indirect tax levies such as:
a. Central Excise Duty
b. Service tax
c. VAT
d. CST
e. Entry Tax
f. Octroi
g. LBT
h. Countervailing Duty
i. Special Additional custom duties
j. Surcharges and
k. Cess - What are the taxes that will continue post GST??
The taxes that will continue post GST are:
a. Basic Customs Duty
b. Export Duties
c. Stamp Duties
d. Electricity Duties
e. Taxes on professions, trades, callings and employments. - What are key features of GST?
Following are the key features of GST:
a. GST is collected on value added at each stage of the supply chain
b. At all stages of production and distribution, taxes are a pass through and tax is borne by the final consumer
c. All sectors subject to taxes with very few exceptions.
d. GST would facilitate seamless credit across the entire supply chain and across
all States under a common tax base. For example, Central Excise duty paid on
puchases and service tax paid on input services are not eligible to be set off
against output VAT paid by dealers / distributors / stockist. GST would enable
the dealers / distributors / stockist to take credit of the GST paid on
procurements and offset the same against output GST to be paid on further
supply of the goods.
There are plenty more details about it which i might post later.
thanks for reading and upvoting..